PARIS (dpa-AFX) - French dairy giant Danone SA (DANOY.PK) Tuesday appointed Emmanuel Faber as Chief Executive Officer, while the current Chairman and CEO Franck Riboud will remain as Chairman of the Board. The change in governance, based on the recommendation of Riboud to separate Chairman and CEO functions, will take effect on October 1. Danone shares are currently trading around 2 percent higher in Paris.
As part of this new governance structure, Bernard Hours' mandate as Co-COO was terminated. Hours was with the firm for over the past 30 years.
Danone's Board of Directors voted to separate the functions of Chairman and CEO. According to the firm, the change reflects Riboud's desire to concentrate on the key strategic issues facing Danone in the medium and long term and to lay the groundwork for a smooth succession.
The Board also voted to set up its own Strategy Committee, to be headed by the Chairman with the participation of the CEO, as well as to expand the Chairman's duties. This is to ensure that Danone continues to benefit from Riboud's insights and in-depth knowledge of its markets, corporate culture and business environment, the company said.
This decision will enable the Chairman and the CEO to work in concertation on major issues in Danone's corporate life, and allows the Chairman to represent Danone in his contacts with leading stakeholders.
Riboud joined the company in 1981, and since May 2, 1996, he has been Chairman and Chief Executive Officer.
The newly appointed CEO, Faber, joined Danone in 1997 as Head of Finance, Strategies and Information Systems. He became a member of the Executive Committee in 2000. He was named Vice-President for the Asia-Pacific region in 2005, and a Deputy General Manager since January 1, 2008. He was appointed Vice- Chairman of the Board of Directors on April 28, 2011.
Commenting on the CEO, Riboud said, 'Now 50, he has in-depth knowledge of our company's structures and operating modes, an understanding of the business and social challenges facing our core businesses, innovative flair, an uncompromising focus on results, and a deep respect for and commitment to Danone's culture and brands, all of which make him a natural choice to lead our 100,000 employees. He has the full trust of the Board of Directors.'
In Paris, Danone shares were gaining 1 euro or 1.86 percent, and trading at 54.73 euros.
Copyright RTT News/dpa-AFX